US individuals and entities will be barred from doing business with them following the move, which was carried out in conjunction with the United Arab Emirates (UAE).

“The Iranian regime and its central bank have abused access to entities in the UAE to acquire US dollars to fund the (IRGC’s) malign activities, including to fund and arm its regional proxy groups,” Mr Mnuchin said in a statement.

“We are intent on cutting off IRGC revenue streams wherever their source and whatever their destination,” he added. What is the Revolutionary Guard?

Iran became an Islamic republic in 1979, when the monarchy was overthrown and clerics assumed political control under supreme leader Ayatollah Khomeini.

Mr Khomeini quickly set up the IRGC to protect the state and defend the principles of his revolution.

It has since grown into a major military, political and economic force in the country. With thousands of troops and advanced military equipment, the Guards have been behind many of Iran’s key military operations.

Russia, Germany and France called on both countries to exercise restraint, but the US said Iran bore “full responsibility for the consequences of its reckless actions” and that Israel had a right to defend itself.

Many bad things were done to Iran by some really bad people. These criminals will have to be brought to justice.For many generations this country was captive to a corrupt regimes. Iranian people had to find ways to survive ... ReadMore +